China will introduce favorable tax and financial policies to support the development of its green economy, according to its 12th five-year plan, which started last year. A strong “green” policy is essential if China is to maintain its rapid and sustainable growth. "China will build a good fund raising environment for companies to develop green technologies by establishing green technology investment and related equity funds," said Wang Yuqing, deputy director of the Committee of Population, Resources and Environment of the CPPCC National Committee.

The transition to a global green economy may generate a large market exceeding US$1 trillion. During the 12th five-year plan period, the Chinese government will invest US$468 billion in green sectors compared to US$211 billion over the previous five-year period, with a focus on three sectors: waste recycling and re-utilization; clean technologies; and renewable energy. With this amount of public investment, China's environmental protection industry is expected to continue growing at an average of 15 to 20 percent per year, and its industrial output is expected to reach US$743 billion, up from US$166 billion in 2010. The multiplier effect of this emerging sector is estimated to be 8 to 10 times larger than other industry sectors.

However, Chinese green companies, especially privately-held ones, are facing difficulties in gaining support from capital markets and depend mainly on funds and subsidies provided by the government. Industry experts are advising these companies to seek funding sources outside of the country, including sovereign investment and national funds. The Swiss government, for example, has established funds to support the development of the low carbon sector in China.

During the recent 4th China International Forum on Green Development held in Guangxi province, industry experts gave speeches on a wide range of subjects, including energy conservation, emission reduction, corporate responsibility and green energy. The cities' commitments to reduce emissions play an important role in China’s green development. "According to official statistics, nearly three quarters of China's carbon dioxide emissions are released from its cities annually, and the top 100 cities make up 51.3 percent of the total emissions per year," said Niu Wenyuan, a counselor to the State Council.

An industry analyst pointed out that China would face challenges in raising funds for the development of its green economy. According to the United Nations Environment Program, US$750 billion per year from 2010 to 2030 is required to support the transition to a global green economy — and the figure jumps to US$1.6 trillion per year from 2030 to 2050. From 2007 to 2008, non-OECD countries renewables investment jumped from 29 to 40 percent of the world’s total, with the lion’s share coming from just three countries: China, India and Brazil.

@chris: the energy needed to manufacture, build, operate and demolish a windturbine is recuperated within half a year. For solar energy systems it is somewhere between one and five years, dependent on technology type and solar climate. So even if you are correct on the coal exports it is still a win.

By the way the back-up required for renewables is highly overrated. Serious studies all confirm that so called "shadow powerplants" are not necessary.

We are installing wind turbines and solar panels that need backup from natural gas peaking power plants. This is forcing the closure of base-load coal plants. The excess coal is being exported to China where it's used for the manufacture of wind turbines and solar panels. The solar panels and wind turbines are exported to the US to feed the frenzy for renewable energy.

This is a vicious circle that is bound to enrich China at our expense!

China not only needs to invest in renewable energy it needs to clean up its waste and oil sludge and provide potable water to its citizens. WTE plants need to be built as waste is getting out of hand. We can assist with these projects. We are a financial sourcing company for GREEN energy projects and have these projects in our portfolio. Where are the famous Chinese millionaires and billionaires to invest in their country?

Wow. You should check out this author's other postings, especially the ones about EVs. Don't the Chinese have enough EV trolls? Any guesses as to how long before the Chinese become the world leader in vehicle battery production?

Apparently, the Chinese aren't afraid of the word 'subsidy' and know how to use it.

The American policy on waste and pollution is just bury it - literally and figuratively. Caping landfill deposits on a daily basis isn't much of an advance for 100 year's effort. What do you do with toxic sludge? Bury it. What do you do with radioactive waste? Bury it. What do you do with fly ash? Bury it. What do you do with a hazardous EPA study (or the EPA itself)? Bury it. And when are we going to see that commercial: 'America's coal - producing more than half of our low cost air pollution'?

Of course, Americans don't need renewable energy as desperately as the Chinese. Americans can still afford to send a Jackson to King Abdullah every time they fill up at the pumps and another to their HMO every time the crank up the AC.

What seems never to get mentioned is that China has to develop its solar resources, it has no other choice. Whether this detail gets lost in the media 'happy talk' or is not useful as a cudgel in the domestic arena doesn't matter.

We in the 1st World need it less, but it is still a very useful policy. The logic has been explained by the retired head of Shell Oil USA, of all people. Just as we have had to control our emmissions of solid waste adn liquid waste, and started to control our emmission of gaseous waste, we have more to do.

Luckily, we still have mechanisms to exploit, but we are running into entrenched economic interests. That is our problem.

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Nanjing Shanglong Communications Liu Yuanyuan is Director of Operations and Co-Founder of Nanjing Shanglong Communications. Liu Yuanyuan previously held the position of office manager at the London Financial Times' China translation and...